Setting Up A Subway Franchise Marketing Essay

My idea is to set up an established franchise. Thus a Subway Franchise. My decision was based on the idea that there is a gap in the market for this particular business especially in the South Norwood area. The only popular sandwich store is Subway and although it is already a well-established brand, I assume that in the right location my very own store will have the potential to make a lot of earnings and survive. My businesses unique selling point will be presenting my customers the choice to choose which fillings or types of breads they would like to eat for their sub. A couple of practically two million different sandwich combinations on the SUBWAY menu. This versatility will give the customer their needs and we will gain the loyalty.

I think that in the right location my own Subway franchise will have the potential to make income and survive. I will be answering the question: 'Is it simple for Subway to extend by establishing a second sandwich wall socket in Central Croydon'.

It is a well-known brand but in the UK not many customers are aware of this proven name. I will make sure these potential consumers know it. I intend to do that by identifying an opportunity in the market and when there is a space. I intend to use forecasts to see whether my business will be successful such as cash flow and break-even. Using fund available it can help me to establish an excellent franchise opportunity. I've found out Subway is among the finest franchises to set up and lots one entrepreneurial opportunity. Despite this, as there is a highly competitive market that my business would have to enter, using a brand that consumers trust and identify will lead the sandwich club gaining a well balanced market talk about, and devoted customers in a brief time, and also some of the risk will be reduced. Overall, buying into a franchise permits internet marketers like me to have an opportunity to give a known product from a recognised brand with a proven operating-system already in place.

Projects Seeks & Objectives

Aims are the long-term intentions of your business while the objectives are had a need to fulfil these overall seeks of your business. The primary aim of this task is to execute a sufficient feasibility study in order to evaluate whether or not my business will achieve success or not. If my business will probably fail I would like to determine what factors resulted in this inability and subsequently what factors led to its success. If it's not feasible then at the end of my project I'd like to draw some kind of conclusion about what could have been done to make my business much more successful especially in the case that my business fails. Despite being a franchise and a well-known brand in sight of my prospects, this feasibility research could endeavour failing and following that I could see what actually could have been enhanced.

If it does prove to make an effort to success, I am able to identify the best location to set it up, what products to advertise consumers' want/need with what price. Furthermore, I would like to examine what factors resulted in the inability of my business, and what factors contributed to the success of my business, and by the end of the job evaluate what might have been done to improve the business being a success.

By repeating this I will check into what makes a business strive into success, such as location, the challengers, products to be targeted at potential prospects and whether there is truly a demand searching for a well-known franchise as this. Information will be retrieved through key and secondary options and research. I intend to use principal research to be able to identify, suitable locations, current prices of my local competition, products that are needed and needed by consumers in the market, the right promotional methods in order to draw in potential consumers and to establish the target market. In addition I shall use supplementary research to determine statistics on most products sold/helped bring, the time period where consumer spending is at its highest, and where and any information retrieved by rivals on consumer spending patterns within the marketplace, or successful marketing strategies. All project results will be used to find out and evaluate my task and backup last decisions. I will need to remember that I am going to need long-term earnings in order to endure.

Business Goals & Objectives

Aims should be an expression of all parties of the business, i. e. employees, shareholders. The collection seeks should be long-term and everyone within the company should work to achieve them. Aims can encourage dedication within a company, i. e. offering employees a long-term job within the organization. Most organizations do not spend levels of time on looking to define their seeks, especially true of small firms where communication levels are quick and easy to transfer information such as my organization Subway. Goals are a basis in which I will place my targets. These can be influenced by the business enterprise culture and the workforce culture.

Delegation may take place, in order to permit different departments to concentrate on different aims. This allows research of the success of the objective easier. My aims are

Produce quality products at a competitive price.

Bridge the gap between social classes giving everyone high classed products.

In co-operate consumer's needs and desires in products.

Increase consumer's value of living.

Turn luxury products into necessity products anticipated to high quality and the goal/function to the consumers.

Produce a income making business.

Design a corporation whereby customer's satisfaction is achieved and a friendly service is offered.

Primary Aims:

Will the new Croydon store end up being adequate in all areas, but most of all will it be profitable, to a sufficient level of return?

Secondary Aims:

Collect the previous year's accounts and financial records for Subway, and evaluate the present situation.

Investigate whether there exists land available to broaden its property.

To obtain marketing data.

Find out the start-up costs and first investment for the store for growth.

To diversify the business enterprise.

Using the retrieved raw data, produce forecasted accounts and measure the firm's financial position in the foreseeable future.

Decide whether a change in price is necessary or adding or taking away of items is required to the existing menu.

Assess the time scale of the growth.


Examine existing accounts of the business enterprise to whether the firm has enough capital for expansion. I am going to do this by learning the profitability, liquidity and the efficiency of the firm using ratio research from the Trading Earnings and Loss bank account and the Balance Sheet.

I will find out using a proper website, where I want to open the store. This will point out all the encompassing stores and vacant properties. I will utilize this as a basis to discover a vacant suited site for the new Subway Restaurant. Once an appropriate site is chosen, I'll choose whether to rent or buy a free of charge carry property.

I will make a questionnaire for the clients going to the restaurant and do a survey of the folks in the area to find out their views about the recognised brand name Subway and if the marketplace for the merchandise is aimed confidently to the right consumer market.

Retrieve information from the Subway website on costs that'll be would have to be incurred, including the start-up costs and initial investment.

Investigate the ways in which the business can diversify, for example adding other styles of catering services such as catering for special situations.

To forecast the businesses Trading Profits and loss consideration. Balance sheet and cashflow forecast if the restaurant was to extend. Through the use of Ratio analysis, I plan to analyse the firm's financial position in the future.

Upon my findings in my own questionnaire I will decide whether extra items should be put into the present menu.

Using Decision-Making Techniques such as decision trees and critical course analysis to help reach a conclusion and calculate the least time that could be taken to complete a possibly problematic process.

Mission Statement

The main aim of a objective statement aims to create and/or notify, stakeholders and shareholder of what the entire purpose of the business is. This involves stating what the business intends to attain and models the theme for arranging objectives and strategic methods. It shows the businesses reason for existing; why it has been set-up to begin with its intentions.

However, in the likeliness of placing an optimistic and achievable objective assertion, a criterion has been place for business to check out. SMART (smart, measurable, arranged, reasonable, time specific), allow businesses o analyse the quest statement and observe how success full it would be. As an over-all not the companies overall mission assertion is always to become the biggest and best-value store in the market.

Mission statements shows the firms reason for existing, why it has been set-up to begin with (motives). Existing Subway missionary statement: "To supply the various tools and knowledge to permit entrepreneurs to successfully compete in the Quick Service Restaurant industry worldwide, by constantly offering value to consumers through providing nice tasting food that is good for them and made just how they like it. "

SWOT analysis

This is an instrument, which is used to review interior and external business surroundings. The good thing about doing this is to assess the firms current activities and bottom decisions about them. It is an effective way of figuring out my Strengths and Weaknesses, and of examining the Opportunities and Threats my business might face. By carrying out an SWOT analysis and using the SWOT construction it will help me to focus into areas where my business will show strengths and where the greatest opportunities lie.

My strengths are any resources and capacities that can be used as a simple for developing a competitive advantage over other sandwich outlets.


Being a small singular trader franchise means that I will have a closer romance with the clients, thus obtain ideas and create a personal romantic relationship with them. Then begin to create a loyal customer foundation. Eventually I could promote and change my products to the needs of the consumers.

I have a good location for my business that is easy to access and it is viewable by consumers. Thus creating recognition for consumers to come in and buy something.

Establish competitors, which have recognized consumers spending practices. Makes it simpler to establish a business whereby, their needs and needs already are aware.

A market-led business that is dedicating to consumers means that you will be presenting the consumers what they want, which would make sure they are, happier-'delighted'. Ultimately, returning back for additional purchases.

An excellent worldwide reputation in place means a long trading period could be portrayed. Finding a trustworthy company is guaranteed, a person who is prepared to have a chance on a new established franchise.

My Weaknesses are anything, which cannot be included as strength, are things that the business would do terribly, that it's ineffective at or that this has an unhealthy reputation for.


Low start-up capital- without capital, the business enterprise will find it hard to start-up and get lending options to invest in its strategies.

No credit from suppliers- without credit, it can be hard to pay back debts and have money left for re-investment in to the business.

I will have a small amount of staff, as I will not have the ability to pay for more than I want, so when my personnel are absent I am going to have no form of back up for the coffee lover.

I have no experience in Marketing which means that I may well not market Subway's initial products effectively thus losing from valuable profit, but also on customer loyalty easily market it imperfectly.

My cash flow will be unreliable in the early phases of business, thus I am going to not have any chances to buy things easily see an opportunity for it.

Opportunities are anything, which present a chance for profit and growth due to its strengths or due to eradication of its weaknesses.


New technology may decrease enough time and improve the quality of my products.

Company extension, i. e. increasing capacity inside for eat in.

To gain Market talk about by diversifying myself from others: innovation of products and new product range.

Increase demand for quality general-purpose products.

Competition may be engrossed with rivalry between each other that they don't take much notice in own expansion.

The benefits of speciality breads and even more exotic fillings will increase the possibilities of the sandwich from a simple snack into meals.

Threats of your business arise from activities of competition and from failing to take opportunities or even to build on successes. Threats also come from complacency, too little rigour, and from dropping profits, perhaps due to increasing costs.


Established, wealthy challengers. All fast food chains, including McDonald's, Burger King, KFC, Pret A Manger, O'Brien's, and Benjy's.

Competitors enforcing new methods to 'damage' new competition where we couldn't challenge against due to low capital. For instance lowering of prices, advertisement campaigns etc.

A probability of competition using 'destroyer' charges. In which we would not be able to operate if we reduced costs any longer.

If my rival starts a Price war I'll not be able to compete, thus threat of burning off customers or slipping into bankruptcy.

Lack of trained, specialised employees.

Shift in consumer tastes means that I am going to need to improve my product selling to match there needs.

There is actually a potential for new competitors trying to take some market show.

Furthermore, I appreciate that with so many opportunities no experience I may easily make the incorrect choice, which could lead to huge opportunity costs. In addition, almost all of the opportunities determined to me, are also recognized to my competitors, and because they have more capital, and even greater customer loyalty, having the ability to take advantage of these opportunities will confirm difficult.

Lastly the weakness of failing to have any experience means that making decisions will be hard, and being able to respond to competition actions would be difficult or even futile.

As due to my SWOT research I come to the final outcome that continuing with the business idea would be unpractical, but with a whole lot of effort and luck, the firm may be successful, however not enough to compete with competition such as Pret A Manger or Burger Ruler but surviving somewhat.

PESTLE Analysis

This examines the external environment and the global factors that could affect a company. It provides a quick and visible representation of the external pressures facing a business, and their possible constraints on strategy. It really is usually split into five external affects on a business- political, financial, socio-cultural, scientific and green. The analysis examines the impact of every of these factors and exactly how they interplay with the other person in the business. The results may then be used to use good thing about opportunities and to make emergency plans for threats.


It might include a awareness of legislation, such as consumer laws, regulation, such as control of certain companies, politics pressures and the federal government view of certain activities.

Factors that can impact are Government legislation such as taxes on products and interest levels. This will influence the business when determining the selling price of the merchandise. To make a income after taxation, the purchase price will have to be increased; nevertheless the price must be attractive to the client and rival that of your competitor. Healthy and safety legislations will have to be considered especially since my business handles food. Improving medical and safety guidelines in line with the regulations place by the franchise would do that.


This might involve the examination of a number of financial factors and their effects on business. They could include: consumer activity such as spending patterns, financial variables such as inflation, and government plan such as exchange rates. These areas are global, but it is also important to check out factors affecting my very own industry. Monetary issues will be the focus of future potential of profit making. This can involve the level of demand and the purchase price in which the product will be sold for. This needs to be compared with other organisations prices to be able to lure consumers. Despite the fact that this is a franchise and costs already are set up, if however the price tag on floor goes up, then for my firm or other food vendors the price of floor is a crucial economic measure as without it we can not make our product and sell them at a cheap price.

The current career rates have increased in the past few years credited to economic factors. Not merely does this suggest that I have a wider selection for recruitment, having the ability to choose the most multitasked workforce. I likewise have the negative result that money consumers are without money and are unable to spend. This is often a reduction in sales of the whole market, and competition can be fierce in try to get loyalty from remaining consumers. In addition exchange rates can affect my business if deciding to import goods form in foreign countries, or basing the factory in overseas. This can certainly increase cost and promote a move back to the uk.

Laws on competitive rates, patterned ideas and quality benchmarks can all have an effect on the way in which my business is run. These regulations can limit the company's expansion and take longer than expected.


Social factors I must analyze are consumer attitudes to my product & industry, environmental issues (e. g. organic food versus food manufactured in a lab), attitudes to health, wealth and time (older people don't desire to be treated not the same as others). Added problems when looking at social and social factors are dissimilarities in ethnic and social teams. Not all communities have the same attitudes - and this impacts the way they view products and services. E. g. Muslims eating pork. Also the actual fact that Muslims eat Halal would affect my business because beef that is sold at Subway is prepared normally and not using the traditional Halal method. Thus, I will lose offers on these major honest and cultural groups. However, another factor to consider is the fact location is dependent on the amount of customers I lose, if there are numerous Muslims in the area then markets will decrease, if not many I will benefit on other honest categories buying my products. Therefore location can still play a part with revenue, especially to my market.


This might involve the examination of a variety of economical factors and their results on business. They might include: consumer activity such as spending patterns, financial parameters such as inflation, and government policy such as exchange rates. Fixed and variable costs of the business enterprise and the effect of changes in product and labour markets. Other economic factors include income progress, debt & cutting down levels (which impact available money) and consumer & business self-confidence.

Increased security methods may include real-time CCTV cameras and invisible cameras around the store to reduce pilferage; this can be mainly located by the cashier tills, as it is highly likely consumers might lead to nuisance around these areas. Creation methods may create, faster production, interpretation products are out in the market much quicker and a cheaper price. In addition quality is not sacrificed. Creation methods will make producing quicker and possible with a higher quality level. Presenting way to the innovation of products. Although with this new progress I'll need personnel that can put it to use e. g. - EPOS till ware and also the capital to by and or coach people to use it. Green issues require the eye of the organisations and its interaction with the environment. We have to monitor how we treat the surroundings with production methods especially, in order to adhere to the current regulations.

Target Audience

The SUBWAY chain's target market is adults between your age ranges of 18 and 49 who eat quick meals and want for good-tasting options. Also, the SUBWAY chain would like to increase its "consideration set" among repeated fast-food consumers who lead an active lifestyle and would like an equilibrium of nutrition, taste, and value. The target audience is an essential aspect when setting up my business, as I am relying on this to make my business successful.

My business is a sandwich store that provides food, food is one of the five basic needs which means that everyone requires food to be able to make it through. Although this is the case it doesn't suggest everyone will eat the food that I will provide. For example young children will not come to my shop to eat large subs so therefore I will need to catch the attention of them by reselling them a specially personalized kids meal filled with simple food with everything inside. In this way I am making the most of my concentrate on range.

Here is an idea about how I hope to attract other age groups

Young Children: I am offering them the KidsPak comprising simple food with a tiny sub sandwich with different alternatives of fillings called Deli-Style Sandwiches and a glass or two.

Teens: I am hoping to encourage teenagers to my shop by offering a delightful variety of sub sandwich fillings of the choice, promoting certain selections such as 7 under 6 with significantly less than 6 grams of fats. Also selling sweet desserts such as cookies.

Adult: I anticipate encouraging adults who are fast-food consumers, who lead a dynamic lifestyle and are seeking a balance of nutrition, flavor, and value. For example a great selection of salads for those who are observing their energy. Healthy, nutritious dishes for individuals who are health conscious will be available rather then going to stores where fast-food is filled with fat such as McDonalds. If indeed they want to consume something throughout their break at work, a quick meals is available at Subway.

Business Structure

I choose to do a privately organised franchise as all Subway stores are franchised and there are no company-owned systems. I feel my business will face less risk easily start a franchise. I could reap the benefits of a 'Subway' experience and revel in it. I feel my eagerness will reflect upon my customers. Another reason why I have chosen to start a franchise into Subway is the fact in america it has been voted franchiser of the entire year by Entrepreneur mag in every categories, before 11 years out of 15 years. Despite that it's the most effective growing franchise on earth (see appendix) with an estimated 25, 000 stores worldwide in 2005, considering that in calendar year 2000 there is only 14, 662 stores. Now Subway has beaten the quantity McDonalds outlets in the US, which is astonishing and the key headlines. With people like Jared that has made Subway even more lucrative by eating a diet only based on Subway, he has gained his desired weight and distributed what his diet consisted to the public, making Subway even more profitable. Out of this enormous approval, a huge selection of children have decided to boost their quality of life by implementing healthy patterns.

I have chosen to become a only trader, because I think it's the best option in my position. I feel I haven't enough capital and experience to become a private limited company, which option is not really open to me easily were go into a franchise. I like to run the business enterprise to my satisfaction, and this reflects my decision to open as a only trader.

Market Research:

Primary Research

Questionnaire as main research will be a lot cheaper, as I am only setting up a business and can not need a great deal of capital. Hard to justify mortgage for main research and can be considered a waste of money. I am going to not send any questionnaires out to people as may not receive them back. I'll actually approach people in certain areas and ask them questions myself. Means I will get a upright answer somewhat than bias and have full awareness of interviewee.

Analysis of Questionnaire:

Question 1- What gender are you?

It is vital to know the gender of the person to recognize which trips the restaurant the most. It'll let me establish the target market or audience. I can find out trends such as whether more males or females enjoy eating sandwiches. Out of this I can focus more on that particular target market decided.

Question 2- In what a long time are you?

Age would be essential to see whether children would purchase a kids meal that's available at Subway. If I know this, I can effectively cater my advertising to them. Out of this it'll give me a clearer picture of the answer rather than a biased or small one. Asking this question will allow me to determine what the prospective market is. In the proven franchise Subway, it mentions how the marketplace is adults between the age groups of 18 and 39- specifically students and families with young children.

Question 3- Which borough do your home is in?

I need to find out which borough the possible client is living to discover if the Subway franchise would best be located in a borough where people know what a Subway Restaurant is. This increase sales to people potential prospects who are faithful to this well-known brand. This can enable me to discover how far they live from chosen location in case their answer will have valid information. There is absolutely no point finding my Subway within an area where most cannot reach or locating it where customers haven't heard about a Subway brand.

Question 4- Have you ever heard of an Subway Sandwich Restaurant?

Obviously, in this question I am able to learn if the customer actually knows just what a Subway is and whether they really need to carry out the other questions relevant to the franchise. If indeed they have ever heard of the franchise they can refer to question 12 also to answer questions only over a basis of sandwiches rather than to the franchise itself.

Question 5- Have you ever seen one?

This will ask if they have frequented a subway, as I need to know if they are actually acquainted with the franchises prices, dishes available and food. This will give me a remedy that is genuine rather than manufactured from assumptions and predictions. If the client has been to a Subway then this question can be linked to answers needing their understanding of a Subway for example their favorite fillings that follows on from this question.

Question 6- How often do you eat in sandwich bars?

I would need to know how usually the customer eats in sandwich bars to meet demand. This will also help me determine how many times I can change special offers available in store depending on how much they go to the store. This along with the question about your actual age can help me to learn what type of person can travel to sandwich pubs or my franchise on a regular basis. These folks will be my main emphasis, who I will be promoting to, as these are the people who will be going to my shop a whole lot.

Question 7- What starting hours should a fresh sandwich bar have?

I wish to see which time are preferable for the potential customer to allow them to visit it at their chosen time.

Question 8 - How much would you may spend on meals in a sandwich club?

This will allow me to allocate a cost for an average average meals in Subway. I'd also have the ability to see if individuals are willing to purchase high-priced goods. Or if indeed they choose the option where they would like to pay a low price. I'll assess my prices predicated on this.

Question 9 - Which fillings do you like the most in your sub sandwich?

Allow me to determine what is typically the most popular filling to the customer's choice and for me personally to determine which filling will be most popular. Therefore I can stock up on the most popular fillings ready for the huge demand. I could make sure there will do supply, during the first couple of months. From my answers I can then use the fillings as a center point when advertising to consumer. It will also help me find out which filling I am going to need to buy the the majority of.

Question 10 - Do you want it to be always a takeaway or eat in Restaurant?

I wish to see whether accommodation for resting in store must be provided or not depending on results from the survey. From then appropriate costs will be proven on refurbishment of accommodation relaxing.

Question 11 - Where can you find out special discounts about Subway?

If the potential customer has many responses to this question, I'll then be able to promote deals in the first couple of months to entice customers to my franchise. Those special bargains will be promoted in several ways in the advertising sector e. g. - leaflet drop-ins and newspaper. This question is to help me find out the best way of advertising. By learning which of the existing methods employed by Subway is the most effective. Using this method I am able to use this method when advertising my business.

Question 12- When buying a sandwich what places do you'd like to visit?

This can help me identify my local competitors. Those are stores that truly sell sandwich products e. g. - Gregg's. I need to know the primary reason customers go to Subway to see if they have actually heard about a Subway and also have given a genuine reason not based on assumptions. By determining the sandwich stores they visit, I could begin a list of my local competition.

Question 13- Why do you really go to Subway, or any other sandwich store?

I asked this question to give me a prediction of why people choose Subway over other opponents. Also if the majority of my sales are based on impulse buying, something that businesses cannot count on heavily to protect costs, or treats or groceries. Alternatively it'll give me an perspective to press my sales at e. g. if for impulse buying I will advertise snacks rather than heavy food.

Question 14- Do you love sandwiches as a healthy solution from other junk food?

This will allow me to reckon whether they really find sandwiches a healthy alternative to junk food and if they choose eating this nutritious meals from burgers or pizzas. I'd be able to decide if sandwiches are a favorite good to buy.

Question 15- Have you been vegetarian, or don't eat certain meats?

My market is zero fat in nature. If the great deal of my customers are vegetarian, I could introduce no meats sandwiches. This will go the same for Halal meat. EASILY experience a low number of folks eating meat, than rather than buying Halal meats, which are expensive, I can introduce more vegetarian dishes to appeal to there needs.

16. Have you been conscience about the quantity of energy or amount of excess fat you take in?

Although all my products are lower in excessive fat, this answer can help me to get consciousness. My pronouncing that my products are low in fats, people who have answered this question yes, will seek out my product, due to its low in excess fat nature.


These external factors that have an effect on my business can have a positive result, however, I really believe in the short-term will have a negative effect. For instance, in light of technological advancements, my business have to have money, to have benefit of them. Unwilling loan company societies maybe likely to refuse more lending options, and therefore, consumers will always be one step ahead of me, producing more quality products more speedily. This will in turn reduce my customer bottom part, and swiftly reduce my sales. Increase in interest rates, will encourage consumer keeping, and having an overall reduction in spending means that business should run on a minimal income income, this is negative for my business as I am relying on impulse buying as well as for essential food to buy when at lunch break during a respite at the job 9for those fast-food addicts) of course, if consumers haven't any spare money a majority of my sales will belong to liquidation.

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